POL 333 Journal 3

POL 333 Journal 3 - yields on government’s debt The...

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The Economist The crisis in the euro area No easy exit Despite an €85 billion bail-out for Ireland, the euro zone’s debt crisis is getting worse. Our  first article looks at why politicians’ attempts to stem the crisis are failing. Our second  examines what a break-up of the euro zone might look like December 5, 2010 This article discusses the problem of continuing bailout processes like the European  Union did for Greece and Ireland.  This article talks about how this policy cannot be continued  and argues that the financial markets can be explained rationally.  The author gives three reasons  why this is so, those reasons were, investors have a right to suspect that the Ireland bailout did  not stabilize the market there.  Secondly, European funds are not large enough to have to bail out  many more countries, for example, Portugal or Spain.  Lastly, it makes sense to demand higher 
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Unformatted text preview: yields on government’s debt. The article continues by giving examples for each of these claims. This article shows the many problems that come with many different nations taking on a single common currency, in this case particularly the euro in the European Union. This article also brings to the light that long term solutions need to be thought of and enacted in the Euro-zone states that will permanently solve these bailout problems while continuing to create a strong euro. The economy was the key area that has drawn all of these European nations together and that the European Union was founded on, and if these problems are not solved and there is a collapse of the euro, which means major problems for the economies using it, then question that rises is, what is going to unite these European countries?...
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